The implementation of any software has a clear goal: on-time delivery in the budget. The sooner a company completes an implementation, the sooner it starts to benefit from the new software functionality. This is particularly critical for companies implementing supply chain management systems. With the help of the system, to improve the enterprise's final income or occupy more market share, bring value to the enterprise immediately.
However, managers ' concerns about supply chain management systems are growing: fear of project expansion, delays and increased project costs have led to project failures. IDC Manufacturing Insights has said that while software vendors are improving their implementation speed, for most manufacturers, the limitations of internal IT resources and business line resources can quickly become bottlenecks in the supply chain 1.
This concern extends further to the system's online level. While the first 18 months of the software implementation can bring high value-added and high ROI to customers, the company faces the risk of reduced value added to investment over time. This is due to the natural shrinkage occurring in every business, this includes the limited skills and expertise of the system maintenance staff, the lack of adequate training for the new employee for the solution and its actual application, the allocation of IT resources to new projects, and the inability to adjust the software as the business changes with the market.
Reduce risk by "cloud"
Given the volatility of today's global economy, companies have never been more rigorous in their scrutiny of soft and hardware investments. Managers must undergo extensive due diligence to determine how to increase the long-term value of an enterprise's investment in supply chain management technology. The failure is naturally not a choice, and now managers are turning to the cloud-computing function of the supply chain, seeking to lift long-term value while eliminating the risk of implementation.
Cloud computing transfers responsibility for installing, operating, and maintaining software to suppliers. The advantages of this move are obvious: improving the security of remote data storage, reducing costs through shared infrastructure, and maintaining reasonable and timely maintenance; other advantages abound. However, the real value of implementing supply chain management technology in the "cloud" environment is that it improves business agility and provides long-term quantifiable benefits.
Cloud computing can also reduce implementation risk in a fast and reliable way compared to the traditional approach of on-site implementation. By way of cloud operation, Enterprises can:
Accelerate project startup by accessing the startup environment. In the cloud environment implementation of the solution for the enterprise to provide a template, the effect of the vertical bar to see the shadow. This not only enables users to use test data assessment functions, but also provides a good training environment. The cloud service provider's hardware and software capabilities are ripe or maturing, so the customer system is now running for only a few days, whereas traditional out-of-the-home implementations typically require the system to run for months.
Reduce unnecessary technical procurement costs. By operating in a cloud environment, managers can avoid purchasing fixed assets and potential capacity planning errors. By using cloud services to acquire technology and resources on demand, companies have the flexibility to switch capacity to respond to changes in market or consumer demand, or business fluctuations caused by mergers, acquisitions or withdrawals.
Adopt the risk sharing operation model firmly and confidently. Companies need to work with cloud service providers to share risks. The service agreement lists the availability, performance, security, and change management metrics that define the responsibilities and obligations of the parties. The risk sharing model ensures customer satisfaction.
There is no need for additional staff to obtain expert support. Excellent cloud vendors will be equipped with certified team of highly qualified experts to support the solution. A professional team can help companies avoid mistakes, control budgets, and always keep the project running. Expertise in the area of software and support systems, as well as iterative approaches and best practices for solutions and industries, are critical.
Gain and maintain long-term value throughout the lifecycle of the solution investment. The dynamic attribute of supply chain requires the sustained attention and supply of enterprises. Changes such as acquisitions, withdrawals, employee turnover, global expansion and new product referrals may pose risks to long-term value added to solution investments. Through the cloud Platform performance analysis and system optimization, enterprise supply chain solutions can be a high level of long-term operation.
Cloud deployment can reduce risk for companies in a variety of industries, and is beneficial for companies facing budget constraints, personnel issues, or hardware and software, operating systems, and database upgrades. In addition, companies that are growing or shrinking their businesses, trying to explore new global markets or engaging in acquisitions, can also discover value in cloud deployments. In addition to shortening the implementation cycle, cloud deployment ensures that corporate business benefits are not just at the initial level of return on investment, but continue to benefit throughout the lifecycle of the solution.